Schedule Risk Management - Construction Project Scheduling and Control - page 381

SCHEDULE RISK MANAGEMENT STEPS
The Project Management Body of Knowledge includes a chapter dedicated to project risk
management (PMI, 2013). The chapter deals with all aspects of project risks and serves
as the basis for schedule risk management. PMI suggests that project risk management
include the following:
• Planning, defined as “the process of determining which risks may affect the
project and documenting their characteristics”
• Identifying risks, defined as “the process of determining which risks may affect
the project and documenting their characteristics”
• Performing qualitative risk analysis, defined as “the process of prioritizing risks
for further analysis or action by assessing and combining their probability of
occurrence and impact”
• Performing quantitative risk analysis, defined as “the process of numerically ana-
lyzing the effect of identified risks on overall project objectives”
• Planning risk responses, defined as “the process of developing options and
actions to enhance opportunities and to reduce threats to project objectives”
• Controlling risk, defined as “the process of implementing risk response plans,
tracking identified risks, monitoring residual risks, identifying new risks, and
evaluating risk process effectiveness throughout the project.” (PMI, 2013,
chap. 11, p. 309)
Therefore, we can say that schedule risk management for construction includes
the following processes:
1. Risk management planning
2. Identification of schedule risks
3. Performing qualitative analysis of the identified risks and establishing priorities
4. Performing quantitative analysis of the qualified risks
5. Responding to and addressing risks by avoiding, shifting, preventing, or
accepting risks, and incorporating remaining risks into the schedule and
providing mitigation plans where appropriate
6. Monitoring and updating the risk management plan during update cycles,
including evaluating existing risks as well as starting the identification cycle
for new risks
1. Risk Management Planning
Risk management starts with developing a risk management plan. The plan should pro-
vide direction to the project management team regarding the use of risk management,